Construction Information Technology Blog

Is your time worth anything?

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People love free. Whether it is hot dogs, concerts or software people are big fans of getting good value. Paying zero for something you value is usually a good thing. Consider Google ... it is ubiquitous and is so popular that it has become a verb in the common language. It is a great service, delivered for free to anyone who has access to the internet. It is designed so that the ads are not that invasive and as a result people are not deterred from using it. If you want additional services from Google they offer some that are paid and others that are free. Facebook, Linked In and other very popular web services use a similar business model.

Allow me to share a short anecdote about our experience with offering a free service. We recently launched a managed file transfer service. We allow full use of the very powerful online service called PlanSource FT for free up to certain limits beyond which it is a paid service. If you don’t exceed the limits it can be used for free forever as there are no time limits on the offer. The thinking on our part is to allow people to use it for free to enable them to experience the value it can deliver in helping them be more efficient. If it works well and they like it then we may get a new client for our paid services. Simple deal ... a completely free service within the limits provided ... no commitments ... no hassles.

Within weeks hundreds of people signed up to use the service. One morning we received an email from someone who was angry with us. He thought our tools and the service were great and stated that they would save him a lot of time and money. The problem was he needed to exceed the number of users that were provided for free and for that he would need to pay a nominal amount – less than $100. He was mad at us because instead of using the paid level of the service he had to spend “hours and hours” of his time emailing the documents to distribute them and even with all of that effort some people had trouble receiving them. So ... he thought our services delivered great value to him but that we ought to offer unlimited service for free. Hmmm ...

It appears that this is an example of someone who places no value on their time ... it’s ‘free’ and doesn’t cost anything. He places the same value on his time as he does on our service. I beg to differ and think his time has value and am happy that this experience is very rare as most people seem to feel the way I do about the worth of their time and effort.

What does it cost an Owner to receive a bid?

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The cost of the bidding process for owners of construction projects is significant when you consider all the aspects of managing it. Once the project documents (Drawings and specifications) are complete there are a number of steps required before prices can actually be received and analyzed. Errors or omissions in these activities can have serious consequences including non-compliant bids, claims for delays or extras or litigation relating to the bidding process itself. Some of the key activities include:

• Preparing the bidding instructions
• Preparing the bid form
• Selecting a list of potential bidders
• Advertising the opportunity
• Issuing Invitations to Bid
• Issuing bid documents to interested bidders
  • Making adequate numbers of copies
  • Checking for completeness of the bid sets
  • Packaging bid sets
  • Staff time to organize and log sets that are picked up by bidders
  • Preparing waybills and calling couriers
  • Receiving bid set deposits if required
• Responding to questions and clarifications requested by bidders
• Issuing addenda and tracking who got them and when
• Checking time clocks for accuracy prior to closing time
• Logging bids as they are received and recording the time
• Receiving amendments that arrive via fax or other means
• Matching amendments with the correct bids
• Opening the bids
• Evaluating the bids for completeness and compliance
• Reviewing that the required bid security is compliant
• Tabulating the bid results to prepare them for analysis
• Receiving and organizing returned bid sets if required

While this list is not exhaustive it is indicative of the amount of detail that must be dealt with in order to properly manage the bidding process. The actual cost will of course vary with the size and scope of each project ... but big or small the steps to manage the process are very similar. Hard costs include items like paper copies, long distance calls/faxes, packaging and couriers. The cost of the staff time required to undertake these activities is substantial and is certainly not the highest and best use of valuable human resources. The biggest indirect cost arises after the fact from potential process based litigation or claims for delays and extras resulting from missing information.

In a previous post I discussed the digital site of record approach to managing all of these activities that offers tremendous potential to reduce or eliminate most of the costs of managing the bid process along with reducing most of the risk for problems after the fact.

Preventative legal advice

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One of the most commonly given pieces of preventative legal advice for construction professionals is “document everything”. Clearly this is very good advice ... but it is not always given the attention it deserves. If you’ve ever been involved in a claim or suit you are well aware of the costs of putting together the story of what actually happened. The bill can be thousands of dollars or even tens of thousands for significant claims. Ensuring a properly documented ‘audit trail’ as I call it can be a time consuming effort but it is like buying insurance ... you don’t expect a problem ... but if it arises, you are prepared.

Good document control technology automates the majority of the documentation needed to know with clarity and ease who saw what and when. The best part of this is that simply having the systems in place can avoid the escalation of an issue to a claim or a lawsuit right up front. A number of our clients have reported on situations where someone states they didn’t receive a particular document or piece of information and as a result expect that they are entitled to compensation. An easily generated activity report showing the information was fully available can often lead to an immediate resolution of the issue. For example, a log report from our system stating that “[Person] from [Company] on [Date] looked at page 1, 7 and 10 of Addendum number 6”, was conclusive enough evidence to avoid the time, costs and potential bad relationship of what was a six figure claim for an extra.

Best practices today not only ensure a proper audit trail but they also contribute to significant reductions in the time and cost associated with generating it. Manual creation of distribution logs, transmittals, waybills, email records and other means of proving your case are completely automated. Given the tools and efficiencies that are available today it might be worth taking a second look at how your firm is addressing that piece of very good legal advice.

To scan or not to scan

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I was asked the other day by someone if I thought they should buy a large format scanner to scan construction drawings. They are increasingly receiving digital files but still have lots of paper documents flowing through the office. The scanner and printer combination they were looking at was many thousands of dollars. My very helpful answer was “maybe”.

When we first started this business in 2000 virtually every page of drawings and specifications uploaded to our system was scanned. At that time design consultants and owners were still wary of sharing digital files and scanning was the only way to get the information digitized. There has been a radical shift in the last few years and the concern over distributing digital files has been far outweighed by the efficiencies and cost savings that the consultants and their clients achieve. Happily that means less scanning. Today, 85% - 90% of the documents uploaded to our system are received in digital format.

For others who are considering this question there are several considerations.

• When you receive paper sets of documents are your personnel requesting digital files? Almost every document today is created digitally.
• Do you need the convenience of having the files immediately scanned in your office or can you efficiently outsource it to a local reprographer or scanning service?
• Do you want your personnel spending the time it takes to learn and then operate the scanner?
• Are you prepared for the maintenance bills? We recently replaced the glass on one of our machines. It is $700 just for the glass.

Ultimately the person I spoke to decided that the convenience of having immediate access to both printing and scanning was worth the investment. In a few years this may well be a moot point as more and more information is being exchanged digitally. In the mean time it may well be worthwhile to consider having conversion technology in your own office.

Lost Submittals and Shop Drawings

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I was copied in on some recent correspondence between one of our clients and an architect they are working with on a project (details removed for privacy).

The conversation is illustrative of the reason so many construction professionals are looking for better ways to manage some of the traditionally paper/courier based processes like submittal and shop drawing review.

There are many benefits to online submittal review and tracking not the least of which is no more missing documents. Faster turnaround time, single copy mark-up and review and automated logging and tracking of the review process make it a better process for everyone.

Just to complete the story, the answer to the cost question on this project was “$300 per month or less depending upon actual usage”. The decision was to use the system for the project.

The most effective way to manage your construction documents efficiently

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We are back! Our blogging activity has been curtailed over the last couple of months as we have been very focused on completing our latest innovative new solution for the construction industry called PlanSource FT – File Transfer. I am excited to tell you about it. 

Our existing technologies are widely hailed as delivering significant time and dollar savings to those who use them while concurrently reducing project risk and environmental impact. We were one of the first companies to see the potential of internet technologies to deliver these kinds of benefits to the construction industry. Ten years ago there was no shortage of sceptics who thought that managing and distributing construction documents online was a bad idea. “I need to have the entire plan laid out in front of me to work on it” was a familiar refrain. Changing something as ingrained and iconic as the traditional roll of drawings is a slow process that will only happen if the benefits are substantial. Good news – the benefits have proven to be substantial and the process is changing rapidly. 

When we first started this company (100,000 plus projects ago) virtually every drawing, specification page or addenda uploaded to the system was scanned from paper originals despite the fact that they were all created digitally. About two years ago the transition away from distributing paper sets accelerated as design consultants became increasingly comfortable with the idea of sharing their documents in digital format (typically .pdf or .tiff). Today, only 10% – 15% of the documents uploaded to our systems are scanned, and even that number is declining. 

For the most part the design consultants have used FTP sites (File Transfer Protocol) as the mechanism to share and distribute their digital files with their design team and more recently with contractors. While this mechanism works, it is by no means the best way to accomplish the task. Managing the sites, maintaining security, organizing and working with the files are just some of the challenges presented by FTP.

In response to those challenges we have taken the opportunity to leverage some core elements of our very powerful PlanSource applications to provide the industry with a dramatically better solution to managing and transferring construction files online. That solution is PlanSource FT – File Transfer as mentioned earlier in this article. It is specifically designed for construction and is fast, easy and secure. Users can set up an account and in minutes be viewing documents, sharing them with others, printing them directly, downloading the files they need or even sending orders for copies directly to their own reprographer. It is very inexpensive and will even offer a completely free and fully functional version to those who only have a limited amount of activity.

As digital files have become more commonplace, everybody including Architects, Engineers, General Contractors, Trade Contractors and Suppliers all have an increased need to be able to efficiently manage and work with these files. Whether the files are on a CD, DVD, downloaded from FTP sites or are from an online planroom, PlanSource FT provides a tremendous way to use a single system to effectively manage all of them. We anticipate this great new tool will be released in May and look forward to once again delivering an innovative solution that solves a widespread problem for the construction industry.

All PDF’s are not alike

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The accelerating trend towards sharing and distributing construction documents online requires people who do so to be more aware of what the technology issues are that relate to the process. A very common issue we see is the misunderstanding of document formats and what they can do. The most common format we see for digital construction documents is PDF. It is a raster format which essentially means it is just an image with no particular ‘intelligence’ unlike a vector format like DWG which has all kinds of potential functionality and information embedded in it.

Portable Document Format (PDF) is described in Wikipedia as “a file format created by Adobe Systems in 1993 for document exchange. PDF is used for representing two-dimensional documents in a manner independent of the application software, hardware, and operating system. Each PDF file encapsulates a complete description of a fixed-layout 2D document that includes the text, fonts, images, and 2D vector graphics which compose the documents. Lately, 3D drawings can be embedded to PDF documents with Acrobat 3D using U3D or PRC and various other data formats”.

What is important to recognize about PDF documents is that they are not all created equal. Neither are they all displayed equal. Bad English but I hope you get the point. There are many ways to create PDF documents such as from the full version of Acrobat, a conversion from Word, a scanned image, or even something like a fax machine can produce a PDF. Each of these has the potential to be slightly different, which is where the potential problems arise. It depends what you are using the PDF for and how you are viewing it. For example, if you are sharing it over the internet or in email it is important to properly manage the size for the file. Some of the more sophisticated methods of producing PDF’s or the features that Acrobat allows such as embedding graphics or working with layers can make the files exponentially larger than a simple ‘flattened’ version of the same image.

There are some simple techniques and tricks that can dramatically help with making sure your image files are appropriately prepared for the purpose intended. It may not be a big deal for a few pages but if you are preparing a full set of drawings and specifications for a project it would be best to get it right. Otherwise, the people you are sharing them with will find it very difficult to work with them and you will be back spending time to sort it out. If this is an issue for you and you would like some assistance with how to properly manage or convert files for the internet we would be happy to help. Just email or call and we will help you optimize your PDF’s.

A four step estimating tune up

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Construction estimating is a complex and time consuming process. A good estimator truly understands how a project is managed from start to finish and is able to translate every step into a dollar amount. Estimators today have some very powerful tools available to help them put together the best and most accurate numbers upon which to base their final price. If you are not already doing them here are four ideas that might help you fine tune your process:

1. Help your Trade contractors and suppliers be more efficient
   On a recent and very large project the General Contractor decided to distribute the drawings and specifications on Dvd’s. There were hundreds of pages of drawings and the cost of distributing paper would have been significant. The information on the Dvd’s was poorly organized and very difficult for anyone to work with and find what they needed. Many opted to simply get it all printed out at significant expense just to figure it out. This was simply a short sighted exercise in transferring the cost and effort on to the Trades and Suppliers. It is hard to imagine how that kind of approach which essentially says ‘I don’t care about your time and expenses to give me a bid’ can ultimately result in that Contractor getting the best price from that Trade. If your attitude up front is that you don’t care, why would it be any different when you get on the site? Given that a significant portion of any bid is usually made up of bids from many Trades and Suppliers it would only make sense to demonstrate that you are good to work with and that you are interested in doing what you can to help them make money as well. A better alternative to the Dvd’s (and subsequent addenda) which still took time and cost money to produce and distribute would have been to make them available in an online planroom like PlanSource for fast and easy access by everyone who needed them. It would have cost less than the Dvd’s, taken less time and would have been far better for everyone involved.
   
   
2. Make sure the right people know when you are looking for pricing
   Sending out Invitations to Bid is essential. There is no doubt that for critical Trades and Suppliers you will still need to have a conversation with them but why not give notice that you are working on the project and let them view the documents in advance of your call to make the exercise more efficient. There are countless stories of how one price from one particular Trade or Supplier made the difference in getting the project. Even for a Construction Management or negotiated contract it is still essential to let people know as soon as possible that you are looking for them to spend some of their time and resources to work with you to put pricing together. Adequate notice simply helps them plan better. PlanSource has excellent Invitation to Bid and messaging functionality that can make the process fast and easy.
   
   
3. Get your database of Trades and Suppliers in order
   We are in a position to see lots of company databases of their Trade and Supplier contacts. Obviously, a key resource for any estimator is the list of contacts they have available to gather pricing from. It appears to be a big challenge for many Contractors to maintain and keep accurate as people and companies come and go. The task of “cleaning it up” is often a once a year exercise for one of the administrators that can take a lot of time and effort to get done. There is a better way. Once again there is software available today that virtually eliminates the need to maintain the list. It can be automatically managed and updated using the management tools available in PlanSource . Add in the available prequalification tools and you have an easy way to screen prospective new contacts to improve and expand your available bidders.
   
   
4. Use On Screen Takeoff software
   Accurate quantity takeoffs are of course a critical element of a good bid. While there is certainly nothing wrong with a scale rule and estimating pad there is no question that good onscreen takeoff software can help you get the work done faster, more accurately and with more options for analyzing and refining your numbers. In addition to the takeoff tools available in PlanSource, there are many options in the market but one well worth looking at can be found at www.oncenter.com .

In a market like the current one where every tender is highly competitive it is more important than ever to make sure you are doing all you can to be efficient with your own time and expenses and to reduce the time and expenses it takes Trades and Suppliers to work with you. Better systems yield better results and ultimately improve your odds of being the successful bidder.

Looking beyond BIM to Business Information

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There is an interesting Blog that I follow called AEC Bytes authored by Lachmi Khemlani. In a recent guest article written by Michael Tardif, Director of Integrated Project Delivery Systems at Grunley Construction Company, Inc. discusses the rationale for the agcXML standard which was developed by the Associated General Contractors of America (AGC) in collaboration with NIBS as a standard to support the exchange of business information during design and construction. Khemlani states that, “It is important because dramatically improving productivity and efficiency in the building industry cannot be achieved through BIM alone -- we need to look beyond the building-specific and project-specific information that can be compiled in a BIM model to the entire information flow, workflow, and business processes needed to create and sustain the built environment”. 

The article does a great job of making the case for the development and adoption of standards that facilitate the easy exchange of building and project information are essential to increasing the overall productivity in the industry. We will be looking at incorporating these standards into our applications. This link will connect you to the article. http://www.aecbytes.com/viewpoint/2009/issue_49.html

Free stuff from PlanSource!

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We are nearing the final stages of developing a new secure online technology that is simply the fastest, easiest and most efficient way to share and distribute construction documents.

Do you receive digital files from others? Do you have access to an online planroom or an FTP site? Do you need to then share or exchange those files with other contractors or suppliers? PlanSource FT is designed to be the most efficient possible way for you to do that. It is like an FTP site on steroids. Unlike a typical FTP site where you can only transfer files, PlanSource FT allows users to instantly view, print, download or order paper copies of documents. It is easy to use and requires ZERO training. There is no software to buy or hardware to install. Just sign up online and in minutes you are ready to go.

PlanSource FT is the latest development from one of the construction industry’s most innovative and successful technology companies. Our experience in delivering online planroom technology to over 15,000 users on over 100,000 projects has positioned us with the technology platform and industry knowledge to develop this breakthrough on demand service for the construction industry.

We will be making Version 1.0 of PlanSource FT available early in 2010. If you would like to be one of the first to benefit from using it we have a great offer for a limited number of participants. The first 50 companies who sign up to use this great new software service will receive 6 months of service free. Simply click on this link to sign up. You will be provided with complete details of all fees (which only apply if you continue to use the service after the first 6 months) and of how the service works prior to the launch date. This offer is only available until December 30th 2009 so we encourage you to take advantage of this no cost, no risk offer and be one of the first to start saving time and money.